Powder coatings have the advantage of very low volatile organic content (VOC) and are being increasingly used in industry. One particular use is as a chipguard such as described in U.S. Pat. No. 4,804,581 in which a coating composition comprising an elastomer-modified epoxy resin and a carboxy functional material are disclosed. The elastomer-modified epoxy resin is derived from a polyepoxide and of from 5 to 35 percent of a functionally-terminated diene-containing polymer. Higher levels of elastomer modifier are reported to adversely affect stability and viscosity of the composition.